> For the complete documentation index, see [llms.txt](https://docs.leather.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.leather.io/learn/what-is-a-bitcoin-hardware-wallet.md).

# What is a Bitcoin Hardware Wallet?

A hardware wallet is a device that keeps your private keys offline and signs transactions on the device. How it works and how it pairs with Leather.

A hardware wallet is a small device that stores your private keys and signs transactions inside the device. The keys never leave it, so malware on your computer or phone cannot copy them.

## How it works

1. During setup, the device creates your keys and shows a recovery phrase. You write it down; it restores the wallet if the device is lost.
2. You connect the device to wallet software on a computer or phone. The software shows balances and builds transactions.
3. To send, the software passes the transaction to the device. You check the details on the device's screen and approve with its buttons.

## Hardware and software wallets

* **Hardware wallet:** keys stay offline. Each transaction needs the device. Suited to larger amounts and long-term storage.
* **Software wallet:** keys stay in an app on your computer or phone. Faster for frequent use, but exposed to anything that compromises the device.

Many people use both: a software wallet for daily use and a hardware wallet for savings.

## Risks

* Losing the recovery phrase together with the device loses the funds.
* Buy devices from the manufacturer, not from resellers. A tampered device can leak keys.
* Approve only what the device screen shows. Malware can change what your computer displays.

## Ledger with Leather

Leather works with Ledger devices for Bitcoin and Stacks. Your keys stay on the Ledger, and you approve each transaction on it. See [Connect Leather with Your Ledger Hardware Wallet](/get-started/connect-ledger.md).